ISLAMABAD: Pakistan Stock Exchange (PSX) has exhibited a seven-year high performance, returning 38 percent on investment in shares in the year that ended Wednesday, Pakistani media reported on Thursday.
PSX’s benchmark KSE 100 Index increased 38 percent (or up by 12,934 points) during the year and closed at 47,356 points. In US dollar terms, the market offered a return of 46.22 percent in FY21.
“The market is expected to maintain the growth momentum in the new fiscal year 2022 starting on Thursday (today) following a cut of 2.5 percent in capital gains tax (CGT) on sale of shares to 12.5 percent with effect from July 1 compared to 15 percent since FY17,” Pakistan’s Express Tribune newspaper said. “More importantly, the government’s pro-growth policy, as it targets an economic growth of 4.8 percent in FY22, and low interest rate scenario would keep investors making risky investment in shares on the chance of getting a high return.”
Pak-Kuwait Investment Company (PKIC) Head of Research Samiullah Tariq said the benchmark index would hit a new, all-time high of 55,000 points by the end of December 2021.
However, developments that may affect this growth include the MSCI announcement to downgrade PSX to Frontier Markets from Emerging Markets in its November review, political tension between Pakistan and the United States, a delay in the International Monetary Fund’s sixth review of Pakistan’s economy under its ongoing $6 billion loan program, and Pakistan remaining on the grey list of global dirty money watchdog FATF, Topline Research said.
“Highest ever return at Pakistan Stock Exchange in last 5 years,” Sindh governor Imran Ismail tweeted on Thursday. “During the fiscal year 2020-21 *KSE100index gained 12,935 points and closed at 47356 which is 37.5 percent gain in a year* A marvelous performance despite the economic challenges faced by country due to COVID-19.”
Highest ever return at Pakistan Stock Exchange in last 5 years.
Durrig the fiscal year 2020-21 *KSE100index gained 12,935 points and closed at 47356 which is 37.5% gain in a year*
A marvelous performance despite the econmomic challenges faced by country due to COVID-19— Imran Ismail (@ImranIsmailPTI) July 1, 2021